How to Approach Saving Money During Uncertain Economic Times
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How do you plan for the future when you aren’t sure what it will hold? It’s a question people ask themselves during uncertain economic times, such as when the economy shows signs of weakness or global events impact markets in unpredictable ways. For example, in past years, you may have wondered about what to do with your money in a recession.
Luckily, you can gain peace of mind by controlling your approach to savings. Our dos and don’ts can help you navigate challenging economic headwinds.
Do:
- Find ways to maximize your savings. Get a side hustle and save every dollar you make.
- Try saving methods that involve low risk. If you come into money, such as a tax refund, consider using a certificate ladder. Certificates offer a secure way to increase your savings.
- Spend less money on your home. You can save with minimal effort, by utilizing these hacks for lowering your utility bills or keeping up with maintenance with this checklist to avoid future repairs.
- Get creative to curb your everyday spending. Try a no-spend challenge, create a budget binder, or cut your entertainment subscriptions in half.
- Use a trusted budgeting method. In uncertain times, budgeting builds a cushion in case you need to fall back on it. Consider trying one of these budgeting tips that are great for everyone:
- Have patience. Remember, the economy will get better, and continuing to live on a budget will pay off as you move closer to meeting your personal financial goals.
- Write down your goals. You can revisit them in a few months and reevaluate them based on the state of the economy.
Don’t:
- Make any quick decisions about your money. Whether you’re figuring out a budgeting method or planning a vacation, take time to consider all your choices.
- Attack your debt without a plan. Adopt a proven method, like the debt avalanche or debt snowball method.
- Procrastinate on starting an emergency fund. You can pay down debt and create an emergency fund at the same time.
- Lose sight of your long-term goals. Economic uncertainty will come and go; staying on track to meet your financial goals through ups and downs is critical.
- Overspend on food. Small changes, like growing a garden or meal planning, can reduce your grocery bill and allow you to funnel more money into savings.
- Be afraid to try something new. You can be cautious while also experimenting. Consider:
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- Changing your budgeting system to avoid burnout
- Automating your savings with digital banking
- Consolidating your debt
You may want to explore your certificate options, learn how to consolidate your debt or discover your savings options to help you reach your savings goals. Let us help you navigate uncertain economic times and all the times in between!
